Troy AM CIO Lyon: Expect lower returns, higher volatility this decade

Latest investment report from Sebastian Lyon

James Baxter-Derrington
clock • 2 min read

The past three years have seen corporate earnings rise inverse to the total return of indices as liquidity has outweighed all other factors, but 2020 may mark a turning point, according to Sebastian Lyon of Troy Asset Management.

Global corporate earnings grew by 7% in 2018 and fell by 3% in 2019, according to MSCI, while the MSCI World index fell in 2018 by 9% but rose by 28% in 2019. Meanwhile, the FTSE All-Share fell by 9% in 2018 and rose 19% in 2019. Reflecting on this in a letter to investors, Lyon said: "bad news is good news". BoE: Fund liquidity mismatches could 'amplify shocks in the financial system' However, while even "geopolitical risks are frequently ignored by investors", 2020 could see an end to this "perverse environment", as coronavirus and the US Federal Reserve's change in direction have "...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

Investors turn defensive in January as rate cut expectations change

Investors turn defensive in January as rate cut expectations change

State Street Risk Appetite index

clock 08 February 2024 • 1 min read
London remains 'key destination' for IPOs

London remains 'key destination' for IPOs

KMPG survey of ECM leaders

Cristian Angeloni
clock 15 January 2024 • 2 min read
Market Movers Blog: S&P 500 hits 5,000 mark for the first time

Market Movers Blog: S&P 500 hits 5,000 mark for the first time

Latest news and analysis

Investment Week
clock 09 January 2024 • 1 min read
Trustpilot